Navigating the Future of Finance: Insights and Innovations from Money 20/20 2023
By Sean Welsh, SVP and MD, Financial Institutions
The financial services industry is facing consistent disruption thanks to the emergence of new players and rapid technological advancements. Unsurprisingly, themes like generative AI, embedded finance, and the ever-changing landscape of data privacy laws dominated this year’s Money 20/20 conference. Visionaries, innovators, and disruptors who graced the stage emphasized the need to prioritize consumer-centric strategies to drive the evolution of the industry and cautioned against hastily embracing nascent technologies without considering their potential impact on the end-users. In this blog post, we’ll summarize our key takeaways from Money 20/20, offering a closer look at the current state of the financial services industry and the promising path ahead.
The New Bedrocks of Enhanced Customer Experiences: Holistic Data & Strategic Alliances
As with previous years, the spirit of collaboration within the financial services industry remained a key theme at this year’s event. Fintech startups and financial institutions alike have recognized the value of working together to elevate customer experiences through digital innovation. Throughout the event, attendees were presented with examples of successful partnership models that enable more dynamic and efficient customer experiences, especially around mobile banking and payments. These collaborations capitalized on the inherent agility of FinTech’ and the extensive expertise of financial institutions, tapping into decades of knowledge and a deep understanding of their customer base.
For these partnerships to truly add value to the customer lifecycle, it’s crucial they understand not only the buying patterns within their own banking and payment services, but also those associated with other banking or payment options the customer may be using. By leveraging third-party purchase data, financial institutions can gain a holistic view of their customer base. This vital insight creates opportunities to optimize offerings and enhance experiences based on market and competitive intelligence. It’s a strategic advantage that not only gives financial institutions a competitive edge but also fuels growth and sets them apart in a dynamic landscape.
The Importance of Trusted and Accurate Data in the Age of Consumer Choice
As the breadth and depth of consumer banking and payment products continues to expand, navigating the ever-evolving, privacy-first landscape adds a layer of complexity to brand differentiation. In response, much of the conversation at Money 20/20 revolved around how to leverage the scale and variety of consumer data available to gain insights that drive meaningful change and set brands apart.
In today’s fiercely competitive market, having a focused data strategy is paramount for business leaders in the card and payment product space, where being “top of mind” and “top of wallet” are vital to fostering customer relationships. While some companies may have access to an abundance of data, it’s crucial to remember that not all data is created equal. In fact, irrelevant data can introduce noise, making it challenging to extract actionable insights. This is where transactional customer data emerges as one of the most effective ways of predicting customer needs and delivering personalized experiences in real-time. However, data accuracy and compliance must be center stage when it comes to developing customer insight-driven strategies. Without reliable data, you risk bombarding customers with unwanted or non-relevant offers, which can be harmful to your brand. Using the right data, you can ensure compliance and deliver relevant messaging and incentives at the right customer touchpoints.
Delivering Value in New Environments through Hyper Focus on the Consumer
Embedded finance has been a recurring theme at Money 20/20 conferences and this year was no exception. Media, e-commerce, and payments are firmly converging within the customer experience reshaping the landscape. Consumers are being presented with non-traditional financial interactions woven into their shopping experiences, within social media, and throughout their path-to-purchase. Many merchants are now providing banking, insurance, and emerging payment options directly on their sites without the need to redirect customers to a financial institution. The primary implication is clear – financial institutions will need to be present, while providing value in emerging channels to remain within the consumer’s consideration set of trusted providers. To do this successfully, financial institutions must take a deliberate and measured approach to innovation, prioritizing consumer’ needs at the forefront. The success of the industry will hinge on its ability to align its efforts with the ever-changing demands of consumers.
Money 20/20 2023 showcased the ongoing evolution of the financial services industry, offering a glimpse into where the industry is headed. As we look to the future, it is clear that the finance landscape will continue to be shaped by shifting consumer preferences and choices, emerging technologies, and regulatory changes. The conference provided a vital platform for stakeholders to collaborate, share insights, and prepare for both the challenges and opportunities that lie ahead. Money 20/20 remains an indispensable event for those aiming to stay at the forefront of the financial services industry, and it promises to be even more thrilling in the years to come as the financial world evolves and innovates.
Are you eager to learn more about the latest opportunities available to the financial industry as the landscape evolves? If so, tune in to the Money20/20 in 2023 episode of the Behind the Numbers podcast from eMarketer/Insider Intelligence. In this show, recorded live from the conference floor, I team up with Rob Rubin, GM of Financial Services at Insider Intelligence, and Tiffani Montez, Principal Analyst for Banking, to discuss the data and tech needed to drive customer loyalty and business growth.